Tinto Wine Bar’s Business Plan and
Marketing Project
LAW 6003 - Business Law
University of Cincinnati
October 6, 2024
Executive Summary
Tinto, the Story of a Flying Pig, or,
How the Dream Began:
A dream is something you aspire
to…something that seems so easy,
yet intangible. A dream is something
that combines all elements that you
christen the perfect blend of
wonderful things that will make your
world and everyone else’s a more
beautiful and promising place to
exist. This perfect blend is a beautiful
place to bring people together, a
sanctuary of purity, hope, fear, and
an enjoyable reality. Well, that’s our
dream, and how we began to
conceptualize Tinto.
Tinto is the culmination of two
dreams – two women, both working
as inner-city school counselors. It is
the reality of our end of the day
processing over a glass of wine, and
the vision of better things to come. It
is a business of our own, a place to
fundraise and raise awareness. It is
that creation of a moment in time we
hope our customers never forget,
and return to relive. Tinto is to us,
simply, a creation of our passion,
blended with our desire for
wholeness, peace, love and joy. It is a
culmination of two worlds, two
women, and a project we thought
would happen “when pigs fly.” We
know now that it is time to take flight.
Tinto will be a full-service wine bar,
tasting place and retail seller. Our
wine selection will consist of hand-
picked wines that meet only the
highest expectation and quality of
value. Our service will be intimate,
with a true interest in our customer’s
palate and being, providing an
atmosphere of welcome and
intrigue…a place to meet old and
new friends, and a place to feel the
ease of contentment of comfort.
Both managers/owners will be on the
floor most nights to ensure that
customer service is no less than
excellent, and meets the high
expectations that are at the basis for
our business. Staff members that are
hired into the Tinto family will be
well trained and expected to serve
and work as a part of
the Tinto family, representing the
business respectfully, in a
professional manner that extends a
pleasant blend of good cheer and
knowledgeable service. This
confident aura and pleasant
acceptance will be a most welcoming
factor in our establishment. We shall
pursue that this ambience extends
itself to any person who finds
themselves in the mood to enter our
establishment.
Our wine selection will be delineated
in a way that customers can easily
interpret type, body, sugar content,
primary flavors, and personality.
Customers can keep track of their
selections if they so choose, noting
their likes and dislikes. This will be a
good way for our customers to track
their tastes and also to help them to
select a bottle from our retail area
that they might want to take home.
Tinto will feature community
outreach such as our monthly
specials that benefit a selected
charity. We will also sponsor local
academic institutes in various ways
that are meaningful to the lives and
children and their families in the
community. We will inform the
community of Tinto endeavors with a
monthly newsletter of events that
have occurred and are to come, also
engaging the community in our
purpose of social activism and local
business entrepreneurial ship,
combining with the welcome and
relaxation that Tinto provides as a
community business.
Partners Wendy and Susan graduates
of the University of California
Master’s in Business Administration
Both women have been working with
children in families in inner-city
schools for over seven years in an
effort to support children of poverty,
families afflicted by gang affiliation,
domestic violence, drug abuse, and
sexual and physical abuse. Wendy
and Susan both have experience
working in the restaurant industry for
many years. Both have been involved
in customer service, working directly
with people, and initiating programs
and change for many years. With a
passion for wine, and an
unquenchable thirst for knowledge,
Wendy and Susan will combine their
strengths and passion to enhance
community and business in South
Park, San Diego. Our model customer
service, incredibly welcoming and
warm atmosphere, effective and
interesting advertising combined
with word of mouth advertising, and
efforts to include and build
community will prove Tinto a
successful entrepreneurial endeavor
full of intelligence and passion.
Mission Statement
Tinto Wine bar, or Tinto, is a
corporation built on the realization of
a dream. It is an endeavor created by
heart and soul that aims to mesh the
diversity and passions of the South
Park community, and create a space
where integrity and comfort reign.
What does this mean? How does a
wine bar enrich a community or
mesh the passion of others along
with one’s own passion? Why would
this be desirable to others?
Our endeavor is aimed at creating an
experience for our customers is
something that we personally have
searched for in the city of San Diego
on a regular basis. It is a combination
of our favorite places to dine and
spend time, including our own
homes, weekend getaways, and
favorite dog walks. It is a place that
combines that special feeling of
weightlessness and contentment all
at once. Tinto is a place away from
home that equally invites your nose,
palate, heart, and mind. Tinto will
envelope all of your senses, from a
sense of serenity revealing itself in
the welcoming atmosphere and
décor, to the excitement of a new
taste you encounter, and the
possibility of bringing home a bottle
to enjoy with friends.
Tinto will realize this goal by offering
customers an opportunity to feel the
South Park neighborhood ambience
through wine and local charm.
Customers will explore a world of
comfort and accessibility through
reasonably priced wine, imported
bottles of beer, and various food
selections such as cheese boards,
cold cuts, and desserts purchased
from local shops. Our intent is to
include other local businesses in our
daily sales exchanges as much as
possible. For example, local butchers
such as the Linkery, artisan cheese
shops such as Venissimo, bakeries
such as Sweet Cheeks, and a non-
profit local women’s organization
that makes and sells gourmet foods
as a way to escape poverty and re-
enter the work force, are all possible
partners with Tinto in a symbiotic
exchange to support each other and
local business owners in San Diego.
Most importantly, our wine selection
will embody hand-picked bottles
from around the world that reflect
the manager’s expectations for
quality, taste, and affordability. Our
wine selection will be accessible both
by the glass or bottle in the shop, or
retail. An unparalleled service to
customers will be a priority, as will
the desire to enhance the taste and
desire for wine.
Overall, Tinto will strive for the
unique blend of customer affability
and community cohesiveness in an
exciting experience centrally focused
on wine enhanced by social comfort,
interaction, and acceptance.
Affordability, customer loyalty, and
unique experiential atmosphere only
strengthen the vitality and success of
Tinto in South Park, San Diego.
Products and Services
Wine and Beer
Tinto will offer hand-picked wines
from a variety of countries that meet
the Owners’ expectations of quality
and value. Although the wine
inventory will be fluid based on
availability and experience, the focus
will be on glasses of or near $7.50.
Wine will be offered in-store by the
taste, flight, glass and bottle. In
addition, bottles may be purchased
for off-premises consumption. Wine
flights will be offered based on
season and stock as well as a build-
your-own flight that will be available
at times. All wines in the store can be
opened for a glass. In addition to
wine offerings, a limited menu of
premium beers will be offered by the
bottle at an average price of $6 for
those customers who are not
persuaded to indulge in the staff’s
passion for wine.
Food and Non-Alcoholic Beverages
Tinto will serve prepared gourmet
foods to compliment the wines being
served, but will not feature a full-
service kitchen. Tinto will partner
with neighborhood catering
businesses that will provide food
items to be kept in short-term
refrigerated storage in the store.
Among the items initially planned for
sale are: cheese plates, cured meat
plates, olives, nuts, fresh and dried
fruits, prepared spreads such as
hummus or cheese spreads, crackers,
breads, chocolates and individual
cakes and tarts. In addition, Tinto will
offer bottled water, and a small
assortment of premium soda by the
bottle.
Miscellaneous Merchandise
Tinto will offer miscellaneous
merchandise for sale as a means of
keeping with the mission of
increasing the role of wine in the
culture of the neighborhood as well
as complimenting core sales with
high margin impulse items. Logo T-
shirts, hats, glasses and other wine-
related items may be presented for
sale in the store.
Events
Themed wine tastings, wine classes,
and excursions to local wineries will
be offered on a regular basis and
open to the public. In addition, Tinto
will solicit private parties and tastings
to be hosted at the store. This will
benefit the community as Tinto will
offer a unique experience for a
private parties and public events
where the consumer will have not
only an attractive atmosphere for
socializing, but an opportunity to
team build together in a common
and enjoyable learning experience.
Customer Service
Customer service at Tinto will prove
to be our greatest selling point. In
researching market competition,
customer service albeit generally
friendly, did not meet the warm,
inviting expectations of the Owners.
At Tinto, one of the Owners or the
General Manager will be on the floor
at all times to shrare their expertise
and extend a hearty welcome to
ensure that each customer has a truly
quality experience regardless of their
history with wine. In the future of
Tinto as servers are hired to assist,
each will be trained to ensure the
staff’s wine knowledge meets the
Owners’ minimum standards. In
addition to the knowledge and
passion that the owners and staff will
emanate, the store will display
extensive information regarding
wine varietals and regions to assist
customers in understanding,
identifying with and becoming self-
sufficient in comparing and selecting
wines from around the world.
Customers
Tinto’s customers are from a broad
spectrum of demographics across
generations, professions, genders,
and ethnic backgrounds. However,
there are a few general guidelines
that can be applied to define the
Tinto customer:
• Of legal drinking age (21+)
• At least occasional consumer of
alcoholic beverages
• Earns middle class income and up
• Has attained some level of post-
secondary education
• Enjoys food and dining
experiences
• Enjoys public socializing
• Enjoys leisure time and activities
San Diego is an extremely well-suited
environment for this type of
customer as it is a diverse and
growing city experiencing a
revitalization of commercial and
residential growth, adding to a
customer base already rich with
target demographics. San Diego is
home to multiple military
installations, universities, a thriving
tourism industry, maritime
operations, and state government.
Marketing Plan
Niche
Tinto will provide a relaxing yet
stimulating sanctuary for people of
all demographics to unwind and
enjoy a glass of wine at their leisure.
In addition, Tinto’s wine education
offerings will engage and enlighten
the community through
understanding and experiencing the
positive influences of wine. These
assets will make an impact on the
community and will likely keep
community members coming back
for more.
Message
At Tinto Wine Bar we will dismiss any
notion that the passion of wine is
connected to pretension. We
genuinely care about wine and each
of our customers’ experience with
wine. The owners of Tinto believe
that wine consumption is intended to
be a fun and relaxing cultural
experience, therefore our
atmosphere will be as comfortable as
home yet stimulating to the senses.
Word of Mouth Advertising
The owners of Tinto have an
extensive network of friends and
associates in a variety of industries in
the San Diego area. Through this
network, Tinto will receive a
significant amount of pre-opening
and opening “buzz.” Our methods of
communication with our word of
mouth network will include: email
updates of progress as opening night
nears, invitation to join a preferred
customer list, invitations to host
private events, and a grand opening
invitation.
Local News Article
Tinto will solicit the San Diego Union
Tribune, the San Diego Reader, San
Diego Magazine and a multitude of
local websites, newstations and
magazines to write stories about
emergence of the local wine culture.
Paid Advertising
Tinto will have its website up and
running two months prior to
opening. To ensure various internet
search engines will point potential
customers to Tinto’s website,
multiple rounds of testing will occur.
Tinto will look to advertise in the
local publications listed above as well
as the University of San Diego
periodical and a multitude of local
websites such as
signonsandiego.com. Flyers will be
distributed and posted throughout
the community.
Grand Opening Event
Tinto will hold a grand opening night
inviting friends, family and the public
from around the country, but
focusing on the local San Diego area.
This event will feature free food,
wine and live music. The goal of
opening night is to generate
enthusiasm for Tinto by providing an
exciting and enjoyable evening to
mingle, meet the Owners, become
acquainted with products, sign up for
our email list and get a sense for what
Tinto is all about.
Promotional Budget
The following bullets describe the
categories and associated budgets
for the initial promotional expense to
get the business up and running. The
advertising budget for ongoing
operations is included in the
operating expenses line item found
in the financial plan.
• Paid Advertising
• Website
• Newspaper/Magazine Ads
• Flyers
• Grand Opening Event
Economics
Market trends
Currently trends in the market reveal
an increased trend in the United
States wine market and consumption
per capita. Economically, the wine
market experienced a milestone year
in 2006 in the United States,
exceeding 250 million cases for the
first time ever. Adult per capita also
set a record high, soaring from 1 plus
gallons consumed to over two and
one half gallons, complementing an
increased consumption run of 13
years in a gaining market for wine
sales. Historically, the U.S. wine
market belies measured decade-long
ups and downs, surging in the 1970’s,
only to falter in the 1980’s, and rise
again in the mid 1990’s that
continues through 2008. The outlook
for the expansion of the U.S. wine
market looks to be extremely
positive.
When revisiting the interest of table
wine in the United states from 1960,
one may assert that consumption has
been on the rise, and that the
estimated sales of table wine will
only continue to increase as medical
studies continue to verify the health
benefits of wine. Consumption and
driving the increased consumption of
wine drinkers age 61 and up.
Between 2005 and 2008, San Diego
wine drinking trends indicate that the
demand for wine went up due to
increased exposure of youths to wine
drinking. At the3 age of 21 plus, a
person was allowed to drink alcohol.
This plus other reasons were very
instrumental for the growth of sales
for wines and beers. Discotheques,
decent clubs, bashes or parties plus
other events were warmly welcomed
in San Diego during this period. All
generation types were involved in
drinking, hence was not a big issue so
long as one was aged 21 plus (Small,
Couturier & Godfrey, 2011).
In the US, wine consumption
between 2005 and 2008 was
remarkable. Consumption increased
overtaking the demand for beer and
spirits. The baby boomers aged
between 47 and 65 were
instrumental to the rise of wine
consumption in the US with
researches showing that one in every
four bottles of wine consumed in the
US is consumed by the baby
boomers. The generational trends
show that 6 % of the millennial aged
between 17 to 34, that is about 70
million were drinking wine daily in
the US, 26 % drunk it several times a
week and 19 % drunk it once a week.
The generation X aged between 35
and 46 and they accounted to 44
million people were also
instrumental to the rise of wine
consumption. 62 per cent of
generation x were core wine
drinkers, an increase from 41 per
cent the previous years.
Those aged 65 years and above, the
then largest proportion of the daily
wine drinkers also facilitated the
increased wine consumption. Of all
the generation trends, the millennial
and the generation X segments were
the core drivers who enhanced the
growth of the wine market. Another
instrumental factor that facilitated
the growth of the wine consumption
was consumer direct and the social
media. Through the media, people
got to see or gather information
about a certain brand of wine using
the internet. Through the direct
purchasing habits, the consumer the
sellers had typical tasting rooms
where the consumers would enter
and taste wines giving reasons why
they would or wouldn’t buy the
manufactured wines. The use of
Facebook, MySpace, Twitter and You
tube facilitated the growth (Brostrom
& Brostrom, 2009).
The consumption of wine in the
United States is currently holding at
an all time high in reference to per
capita consumption. In comparison
to other countries, however, wine
sales measures far less. If we
compare the US with other countries
for example the Uruguay, France,
Italy and the UK, the US lags behind.
There are reasons as to why the US
lags behind which include; the
historical perception of wine in the
US market, the high cost of wine
domestically in the US and the Neo
prohibitionist sentiments in much of
the US. Before the US became a
major producer of wine, it used to
import only two kinds of wine namely
the French wine and the Italian wine
which were expensive. The domestic
wines were of poor quality.
The other countries used to produce
wine locally and their prices were
affordable everyday wines hence
managed to beat the US in terms of
sales. The second reason was
because the US domestically
produced wines were very
expensive. In Australia, the wine
production techniques coupled with
an oversupply of grapes made it easy
for the country to do well in the
market and led to competitive
pricing. The third reason or factor
that makes the other countries to
beat US in terms of wine sales is that
wine consumption in most of the
Midwest. The concentration of wine
markets in the US is only centered
major markets because of nice
restaurants, more hotels tourists
among many others. There are some
places in the US you will find that
people hardly drink alcohol of any
kind and this affects the market of
wine (American brewers’ review,
(n.d.).
The demographic of the South Park
area within a one to five mile radius
of the business address is 60.05%
ages between 21 years and 64 years.
Barriers to Market Entry
Current research shows that interest
and patronage to Tinto will be
substantiated, though there are a
few possible barriers to entry in the
market we are targeting. Relatively
high rent costs and limited
availability of retail space in the
targeted areas and in San Diego
countywide may prove difficult for
the proposed location.
A second concern lies in obtaining a
proper license for been and wine
sales in the city of San Diego.
Businesses zoned for alcohol sales as
the primary source of revenue versus
revenue from food, or through
purchasing an existing license are
more difficult to obtain in the city of
San Diego due to the current stance
of the city Chief of Police and the
number of alcohol related incidents.
Alcohol related incidents have been
numerous, therefore taking police
force off of patrol in residential areas.
Interaction with the Food and
Beverage Administration of San
Diego must be according to law, and
licensing procedures must be
adhered to properly. In order to
acquire the necessary licensing and
documentation in order to correctly
and accurately move forward with
this endeavor, we have been seeking
consult from lawyers and friends
involved in the management and
ownership of local clubs and
restaurants. Our mentors in this
arena have proved incredibly helpful
and immensely knowledgeable in
regards to our efforts and have given
us accurate and obtainable
information necessary to move
forward. It is our desire to operate
our business legally and most
diligently, and in the manner of an
establishment that provides a
community with a model of not only
local pride, but countywide
excellence, as well.
Other Barriers
• High capital costs
• High marketing costs
• Consumer acceptance and brand
We will overcome these barriers by
providing high quality service,
reasonable prices, and local
enthusiasm. Our market may be
affected by changes in the housing
market, a drop in the local economy.
Market Risks
Current trends in local economy
show that even though the housing
market and real estate ventures are
decreasing in strength, many people
are still investing in them. This may
significantly affect the sales and
profit of the company as disposable
and discretionary funds become
more limited for customers on a
regular basis. Recreational activities,
including socializing at local
establishments, may feel the threat
of local and nation wide economic
downturns.
Product
Our products and services from our
customers’ point of view
Features and Benefits
Tinto will feature a widely varied and
accessible wine list that entices even
the most novices of wine
connoisseurs. Our establishment is
not about how much you know, but
about how much you can enjoy and
learn from the experience. We are
interested only in opening up an
enjoyable taste and product to
people that may want to experience
something enticing. We are as much
about providing great wine at a great
price as we are about providing an
unequivocally comforting
atmosphere and welcoming place to
enjoy compatibility, conversation
and relaxation.
The intimate atmosphere will boast a
classic yet modern décor that is
widely appealing to the senses, and
that encourages comfort. Pricing will
be a main factor in developing our
wine list and weekly specials,
encouraging customers to try
different wines. The lack of pretense
and the feeling of warmth that
presides throughout the
establishment will encourage even
the most reluctant customer to come
on in for a quiet and special moment.
Major products or services
Major
Product/Services
Important Features – Why
is this special to us?
Different kinds of
Wine
Red, White, and sparkling
Glass,.5 bottle, bottle
Featured Wines, Flights,
Tastes, and Listed by taste?
Beer
Bottled: Heinikin, Amstel
Light, Buff beer, Boulder
Beer, others
Beer of the month
Eat / Food
•
o
▪ Bruschetta – Kinds
▪ Burratta
▪ Chocolate divinity
▪ Fruit/cheese/meat
▪ Desserts
Non-Alcoholic
Drinks
Pellegrino, bottled soda
Retail
Wine/Beer
Atmosphere
Welcoming, a place where
you just want to be, cozy,
low key
Service/Hospitality
Interest in the community;
collaborating with local
businesses
Customer Demographics
• Location: South Park, San Diego,
California. 2226 Fern Street,
92102
• Age: targeting 21 and up – South
Park highest population by age:
• Gender: not required
• Income level: median SD
household 1/1/2007 income is
$61,250.00
Business Demographics
• Space Size: 1000 square feet
• Building Type: Historical building
in restoration phase. One of three
buildings in process of restoration
– project name Firehouse No. 9
• Zoning: liquor sales permitted –
wine/beer license and retail sales
Competition
Tinto will have several primary
competitors represented by
competing wine bars and premium
wine shops in the area, as well as
some secondary competitors
represented by wine bars and
premium wine shops outside of the
vicinity, high-end and large-scale
grocery chains (Whole Foods/Trader
Joe’s/Albertson’s/Von’s/Ralph’s) and
big box merchandise stores carrying
large inventories of premium wine
(Costco/Cost Plus World Market).
The primary wine bar competitors, as
across the board competitors, are the
focus of direct research conducted by
the owners for traffic, quality of
service and sales numbers. The local
high-end wine stores will compete
only in that they will carry similar
wines for retail sale at competitive
prices. Among the secondary
competitors, the grocery and big box
stores may carry some similar labels
but will not offer the level of full
service nor experience that Tinto
offers. Although there are several
wine bars and wine shops outside of
the mid-city area that may offer
similar service, they are not
concerning due to their distance
from Tinto’s core customer base.
Primary Competitors: South Park
• Proprietor’s Reserve, 4711
34th Street, San Diego, CA 92116
• Kensington Vine, 4191 Adams
Avenue, San Diego, CA 92116
• Vagabond, 2310 30th Street, San
Diego, CA 92104
Secondary Competitors
57
Degrees
1306
Street
San
Diego,
CA
92101
‘The
Cask
Room
550
Park
Boulevard
#2104
San
Diego,
CA
92101
The
Grape
823
Fifth
Avenue
San
Diego,
CA
92101
Wine
Steals
2970
Truxton
Rd.
San
Diego,
CA
Bacchus
Wine
Market
647
G
Street
San
Diego,
CA
Sogno
Divino
1607
India
Street
Grape
Connections
1130
Scott
Streets
San
Diego,
CA
San
Diego
Wine
and
Culinary
Center
200
Harbor
Drive
‘San
Diego,
CA
Third
Corer
Wine
Shop
2265
Bacon
Street
San
Diego,
CA
Costco
2345
Fenton
Parkway
San
Diego,
CA
92108
650
Gateway
Center
Drive
San
Diego,
CA
92102
Ralph's
1030
University
Avenue
San
Diego,
CA
92103
Competitive Advantages
Tinto has several competitive
advantages over our competition:
Product Variety
Tinto will encourage our customers
to open and taste any bottle on our
menu in keeping with the mission of
increasing our community’s interest
and appreciation of wine. In
researching Tinto’s primary
competitors, it was discovered that a
number of wine bars push particular
wine flights and discourage
interested consumers from
requesting glasses from the “bottle”
menu. Wines will be selected from
virtually every major wine region
around the world that is suitable to
the owners’ expectations of quality
and value.
Price
The owner’s of Tinto embrace the
truth that wines of excellent quality
can be found at affordable glass and
bottle prices, and this will be
showcased through the selections we
make available to our customers. In
researching our direct competitors, a
notable trend of four to eight
reasonably priced glasses of wine
exist on a list of twenty or more
wines. At Tinto we believe that our
customers will value experiencing
more options for superb quality
wines at a more competitive price
than direct competitors provide.
Service
Tinto’s commitment to high quality
customer service will stand out
among all competitors. At least one
of the owners will be on the floor at
all times to share expertise and
extend a warm, personal welcome to
customers. It is of the utmost
importance to the owners that all
customers feel comfortable at Tinto,
regardless of previous
experience/knowledge of wine. After
all, the goal is to ignite a passion for
wine in the community.
Appearance and Feel
Tinto will draw in customers with a
warm and comfortable feeling
atmosphere that embodies an edge
of sophistication. The owners believe
strongly in the importance of
creating an environment that is
relaxing to the mind yet exciting to
the senses. In researching local
competitors, the owners found a
general shortage of locations that
offer the type of environment Tinto
customers will embrace.
Table 1: Competitive Analysis
(Estimated Importance to each,
1=critical; 5=not very important).
Factor
Tinto
Strength
Weakness
Competitor
A(WineSteals)
Products
1
X
2
Price
1
X
2
Quality
1
X
2
Selection
1
X
2
Service
1
X
3
Reliability
1
X
2
Stability
2
1
Expertise
2
1
Company
Reputation
1
X
1
Location
1
2
Appearance
1
X
2
Sales
Method
1
X
2
Credit
Policies
2
2
Advertising
1
X
2
Image
1
X
1
Promotion
Promoting our business is extremely
important. Promotion will be
accomplished in various ways; local
and city-wide newspaper
advertisements posted in the
Wednesday food section and the
entertainment section on Thursdays
of the SD Union Tribune, as well as a
Sunday blurb for additional
highlights. Internet website and
advertisement, community door to
door distribution of flyers, word of
mouth, and local friends in the
business such as Bella Italia in Pacific
Beach, Buon Appetito and Sogno di
Vino in Little Italy will be including
promotional inserts in their menus.
Our grand opening event will be an
event that is extremely well
advertised and promoted, with a
number of friends and acquaintances
attending an event that will help to
engage the interest and palate of the
community
Community publications include: The
Urban Spoon, The Mission
Hills Inspiration newsletter, and our
own community newsletter – Tinto
Our website will be running
approximately two months prior to
opening. A wide spread and cultural
variety of friends will be attending
the grand opening event, and each
has been asked to bring friends with
them. An email list will be going out
to those that we have been collecting
for over two years to advertise the
upcoming opening of Tinto, and our
grand opening on opening night. This
list encompasses 800+ possible
attendees/customers.
As well as having a large number of
friends, family and acquaintances
that are eager to support Tinto, we
also have a number of friends that
are currently in the San Diego
restaurant businesses. These
restarants include: Caffe Bella Italia,
Trattoria itrulli, Buon appetite,
Arrivederci, and La Pizzeria. The
friends/owners of these phenomenal
local favorites are eager to support
us in our endeavor, and will help to
promote our start in the business.
We will project an image of
accessibility; a place where all
different kinds of people can come
together in a safe and unifying space
that encourages peace, equality and
individual appreciation. We look
forward to, and are exited to create a
place of possibility, hope, and the
representation of a world that we are
proud in which to exist.
Our inspiration and graphic logo
consists of none other than a bronze-
ish/rust colored flying pig! “When
Pigs fly!” was the phrase associated
to our dream of opening a wine bar.
Well, it is time that that they take
flight. The pig has flown. Tinto, our
pig of inspiration and metal sculpture
of the infamous flying pig, was
discovered and purchased at the
North Park Street fair in 2007. We
decided then and there that our
dream was a reality and that we
would begin the process of opening
our place immediately. Our logo is
attached. Our business cards, menus,
napkins, outside sign, checks, t-shirts,
announcement postcards and
letterhead will all proudly
display Tinto the pig. Douglas A.
Skoglin with the design firm Donghia,
will provide direction for our interior
creation. Mr. Skoglin has been a part
of Tinto from the conception and has
visualized and drawn up the interior
of our space. He will implement the
design of our space accordingly.
Pricing
The best method for Tinto is value
based pricing. Competitive pricing
may not be a good idea in this case
because it may affect the business
negatively. With value based pricing,
people will buy our wines because
they will value the good quality and
best services they shall receive when
they buy from us. The average prices
that are not too high or too low plus
the quality wines and services
offered will put Tinto on a
competitive edge. The price fits with
what was revealed in our competitive
analysis. Compared to the other
competitors, Tinto’s prices are fair to
customers because the competitor as
price is a bit higher and that of
competitor B is very high. Price is an
important competitive factor
because of a number of reasons
which may include; emphasizing to
consumers that the products or
services for instance, the Tinto wines,
are of good quality or emphasis on
bargains. In this case, the consumers
may tend to buy from places where
the prices are fair and the goods and
services are of good quality. Some
consumers are price conscious so if
the products or services they want to
purchase are expensive to them, they
may tend to purchase them from
sellers who quote cheaper prices. In
case of demand shifts, the marketer
can change the price quickly to in
order to gain a competitive edge. As
aforementioned, customers really
make their purchasing decisions
mostly guided by the price factor
(Schmidgall, Hayes, Ninemeier, Baker
& Taylor, 2002).
Customer service is a necessity for
any business that wants to succeed,
as in it is the best way or method to
use when one wants to retain
customers. Some consumers may
pay more because they want to
receive exponential services. Tinto’s
employees, the wait staff and the
bartenders should be care givers.
They should make sure that the bar
customers are served well by
developing customer service
relationships with them so that they
may feel at home when they come
into the wine bar. The wine bar
employees being the hosts,
entertainers should also be the wine
bar’s business representatives, so
they should at all times smile and
greet people warmly as they
welcome them to the bar. They
should also try to read their
customers by paying attention to
their needs. They can also learn the
names of the regular customers,
their tastes and where they usually
sit, because customers feel so good
when they are recognized. Another
customer service in Tinto shall be
that of conflict resolution. Customer
complaints should not be ignored,
the employees should make sure that
they apply good personal boundary
skills as well as skills for conflict
resolution. In cases where a
customer gets sop drunk that he
starts to misbehave, the employees
in Tinto should stay firm and say no
where necessary but in a convincing
way try to explain to their customers
why they are against their opinions
(Hayes & Dredge, 1998).
The Tinto Wine Bar is ready to offer
her services and wines on credit but
should be limited. We shall accept
easy credit terms as this will boost
our sales as well as attract and retain
our customers. Just like any other
credit policy, the Tinto’s credit policy
shall address the following; credit
limits, credit terms, deposits, credit
cards and personal checks, customer
information and documentation
(Besley & Brigham, 2008).
Proposed Location
The location of Tinto is very
important for the customers because
if it is not in an accessible location, it
is definite that the business plan will
not be effective. Tinto will be based
in San Diego, an extremely well-
suited environment for this type of
business. Being a home for multiple
military installations, universities, a
thriving tourism industry, maritime
operations and staff governments,
San Diego has all types of
generations, who are wine and beer
drinkers. Tinto will have a large area
set aside for customer’s parking and
the bar’s interior space is also large
and spacious to disallow congestion.
We shall also ensure that it is very
accessible since the best
infrastructure in the area allows
customers to easily access it, as in the
entry and exit will be well defined for
customers with their motor vehicles.
The location is consistent with our
image and customers will really like
it. The competition will be stiff since
there are several wine bars adjacent
to where Tinto will be located but the
way Tinto has been strategized will
ensure that it will gain a competitive
edge. Furthermore, competition is of
great importance to Tinto as it will
foster its growth and of course with
the best qualities offered by Tinto
employees, there is a likelihood that
Tinto will outdo many competitors
and may be worth some time be in
the lead (Strauss, 2003).
Distribution Channels
As aforementioned, Tinto will offer
hand-picked wines from a variety of
countries that meet the Owners’
expectations of quality and value.
They will be sold in the bar where the
wine is purchased and consumed at
the same place. Tinto will also
consider selling her products directly
with them through a mail order or
mailing-list clientele whereby Tinto
shall interact directly with the clients.
As Tinto continues to grow, it will find
many other ways to distribute her
products and services which will also
be effective, as this will help Tinto to
diversify her sales hence making a lot
of profits (Dent, 2011).
Sales Forecast
Best guess
Product
Quantity in one
month
Price per
unit
Total
Black
wine
3000
$7000
21000
Red wine
4000
$8000
32000
Craft
beer
9000
$5000
45000
Worst guess
Product
Quantity
Price per unit
Total
Black wine
3000
$7000
21000
Red wine
2000
$8000
16000
Craft beer 4000 $5000 20000
Operational Plan
Procurement
As explained earlier in this document,
Tinto will offer wines selected from
virtually every major wine region
around the world in keeping with the
expectations of quality and value of
the Owners. The focus will be
predominantly in the $7 to $8 per
glass price range. These wines will be
procured from importers and both
large and small distributors.
Location
Tinto will be located in a commercial
section in one of the Mid-City
neighborhoods of Mission Hills or
South Park. The locations are chosen
because of their central location in
the city of San Diego as well as the
aggressive commercial and
residential growth and popularity of
the area by locals. Our location is
extremely important, as a high
number of pedestrian traffic and
adequate street visibility are
essential. Several mixed-use
buildings are developing in both
neighborhoods and offer excellent
possibilities for serving residents of
the area. In addition, the type of
surrounding businesses will factor
into finding the ideal location for
Tinto when taking into account our
customer base and parking facilities.
The following are some physical
requirements of the space:
• Amount of space- approximately
1,000 SF
• Type of building-1st floor retail
with potential outdoor patio area,
convertible to serving area
• Zoning-liquor sales permitted-
zoning that allows for daily sales
of wine and beer
It is expected that Tinto will construct
some changes to the interior of the
leased space for necessities such as a
bar and small
kitchen/appliance/storage areas, in
addition to cosmetic enhancements
of walls and flooring. With a facility
renting at the average going rate of
$2.50 per square foot for leased
commercial retail properties, the
estimated cost of construction and
interior decoration is approximately
$100,000. This includes but is not
limited to: wall treatments, lighting,
floor, decoration, table and chairs,
bar and bar stools, small kitchen
appliances and dishwashers, wine
glasses, tableware and linens.
Business Hours
The following business hours are
designed to maximize sales and
profits by capturing the happy hour-
to-after the dinner rush, where the
bulk of business will be realized.
Hours will be extended on weekends
for the obvious reason of expected
increases in the afternoonn and late
night patronage. 3pm-11pm (M-Th),
12pm-1am (F-Sa), 12pm-10pm (Su).
Legal Environment
Licensing requirements
Multiple liquor-related licenses must
be obtained from the California
Department of Alcoholic Beverage
Control (ABC) as well as the Alcohol
and Tobacco Tax and Trade Bureau
(TTB) in order to do business. In
addition, there are state, county and
local permit requirements related to
health, fire and public service. The
known licensing requiremtns are as
follows:
• Federal and state liquor licenses
to sell beer and wine for on-
premise consumption
• Federal and state liquor licenses
to sell beer and wine for off-
premise consumption
• License to host live music and play
recorded music
• Food service license
• Fire code inspections and related
permits-The city fire department
will inspect and approve the space
for public use
• Health code inspections and
related permits-The city health
department will have to inspect
and approve the space for public
use
• Building code inspections and
related permits-The site chosen
for this business must be zoned
and/or coded to allow a
‘bar/tavern’ business.
Insurance coverage
Liability insurance will be required
and will need to cover alcohol
service.
Trademarks, copyrights, or patents
The Tinto ‘Tinto’ the flying pig logo is
submitted for trademark.
Personnel
Tinto will begin with 3 employees.
• Managers- The general Managers
will act as owners, managers,
servers, accountants and
maintenance personnel. Tasks to
be performed by these members
of staff include:
o Opening tasks-open register,
prepare daily deposit, take
inventory and prepare wine
orders, prepare food orders,
pick up food from the day
o Closing tasks-balance register,
handle cash and lock safe,
cleaning bathrooms, lock up
o Rush tasks-Serve wine, prepare
and serve food trays, keep
serving areas clean
o Non-rush tasks-solicit event
sales, book live music artists,
deal with vendors, prepare
orders, deal with advertising,
pay bills, prepare tax filings,
bank deposits, payroll, sales
forecasting
• Server- 1 full time server will be
hired to share the role of
bartender, cocktail server, food
server, and bus server. This
employee will be honest, reliable,
engaging, willing to share the
Owners’ passion for wine and
willing to learn as wine knowledge
training will be extensive. In
addition, these servers must have
a reasonable amount of
bar/restaurant service
experience. Pay structure for this
position will be minimum wage
plus tips. Tasks to be performed
by this staff member include:
o Rush tasks-Serve wine, prepare
and serve food trays, keep
serving area clean
o Non-rush tasks-clean glasses
and dishes
o Closing tasks-close out tabs
and turn in receipts, clean
countertops and floors
Training methods and requirements
The Owners are in the process of
creating training materials and
testing for wine knowledge in-house.
Inventory
Opening inventory is expected to
total $20,000 for wine and $5000 for
food, beer and merchandise creating
a total of $25,000.
Key suppliers of Tinto
Tonto shall source her supply of wine
from the top leading countries for the
supply of wine which include; GIV
wine company in Italy, whose office
address is Villa Belvedere, Villa
Belvedere, and 37011 Calmasino,
Italy, Castel in France, and China’s
Wine Opener Manufacturers and
Suppliers. As we grow, we shall
extend our wine generation to the
other top countries leading in the
manufacture of wines. The three
companies come from the top
leading countries of wine production.
These suppliers are reliable for Tinto
because they were started many
years ago , their history is
recommendable and their
experience in the field, being stable
and leading companies in wine
supply make Tinto to be assured or
else convinced about their services as
suppliers and that is why they have
been put on the forefront. Moreover,
they produce different varieties of
wines which are of good quality.
Many people living in San Diego
prefer wines from these three
countries so this assures Tinto that
her wines will be highly demanded by
customers hence putting Tinto in a
competitive edge. According to the
researches done in ensuring that the
three suppliers are reliable, their
records in supply show that they are
countries or companies to be relied
on. The evidence is confirmed after
correlating the records with the
companies they supply to, hence
they are suppliers which cannot be
doubted (Weele, 2010).
Type and amount of inventory
furnished
Wines
Brand
Quantity
Price per unit
Total Cost
Red wine
8
$1000
$8000
Black wine
6
$900
$5400
Craft beer
10
660
$6600
total
20,000
Credit and delivery policies
The supplier delivers all the goods
purchased. The supplier provides
insurance for the goods purchased.
Defect goods to be returned to the
supplier and the Suppliers can give
credit when necessary
Should you have more than one
supplier for critical items (as a
backup)?
It is very important for Tonto to have
more than one supplier for critical
suppliers as a back up because in case
one supplier fails Tinto, it will be
easier for her to source products
from the other suppliers. Then again,
by having many suppliers, it will be
easier for Tinto to source quality
products at a cheaper price.
Do you expect shortages or short-
term delivery problems?
Shortages or short term delivery
problems are common while
outsourcing products but Tinto will
strategically plan to avoid such cases
during deliveries by her suppliers.
Tinto can organize with the suppliers
or use their shipment records to
predict when to expect the shortages
to hence buy the products in large
quantities to avoid being affected
with the shortages.
Are supply costs steady or
fluctuating? If fluctuating, how
would you deal with changing costs?
The supply cost tends to be
fluctuating because of the changes in
demand and supply of the wines and
the other products. Tinto is aware
about this and will do her best to
ensure that it is not affected
negatively about the fluctuating
supply costs. If it chances that the
market supply is steady, the rise in
demand for the wines will result to
high prices of the wines and vice
versa. Tinto will try her best to offer
her customers a steady supply and a
steady price by ensuring that it
reaches a fixed long term
agreements with the suppliers. This
will provide a greater security to
Tonto, her customers and the
producers (Curry, 2009).
Management and Organization
The two Owners will act as Managers
and will manage the business hands
on each day. At all times at least one
of the Owners will be present, on the
floor during operating business
hours. Both Owners bring to the
table a developed knowledge and
passion for wine as well as a distinct
knack for encouraging and including
others to enjoy the wonderful world
of wine. As former educators and
mental health professionals, the
Owners have excellent skills for
relating to people and creating a
warm and inviting environment. In
addition, the Owners have several
years of experience from previous
years of food and beverage service to
depend on. Out of this past has
grown a network of friends and
occupational acquaintances who are
highly supportive of the realization of
Tinto and willing to assist should the
company ever have a need for
assistance.
As stated, Tinto will have two
Managers (Owners). Their primary
responsibilities will include all
opening and closing tasks, managing
food orders, inventory, accounting,
tax reporting, advertising,
entertainment, bartending, serving
customers, and maintaining the
cleanliness of the bar.
In addition, Tinto will begin with one
full-time Server. This person will be
responsible for assisting with closing
tasks, cleaning of surfaces and
facilities, assisting as a bartender as
well as food and beverage service.
Professional and Advisory Support
List the following:
• Attorney-Tinto will have an
attorney for all necessary legal
documentation and
representation needs
• Accountant-Tinto will utilize the
professional services of an
accountant to assist with financial
forecasts; tax preparation
• Insurance Agent-Tinto will
contract with an insurance agent
to secure liability insurance for the
establishment.
• Banker-Tinto will bank with US
bank or California Bank and Trust
• Consultant or consultants
• Mentors and key advisors
Personal Financial Statement
Balance sheet (Wendy)
Start-Up Expenses
Start – Up Expenses
Break-Even Analysis
A break-even analysis predicts the
sales volume, at a given price,
required to recover total costs. In
other words, it’s the sales level that is
the dividing line between operating
at a loss and operating at a profit.
Expressed as a formula, break-even
is:
Break-even Sales =
Fixed Costs
1- Variable Costs
=30,000/(1-16)
= 2,000
Assumptions
The variable costs are uniform and
they can be computed
Appendices
Include details and studies used in
your business plan; for example:
• Brochures and advertising
materials
• Industry studies
• Blueprints and plans
• Maps and photos of location
• Magazine or other articles
• Detailed lists of equipment owned
or to be purchased
• Copies of leases and contracts
• Letters of support from future
customers
• Any other materials needed to
support the assumptions in this
plan
• Market research studies
• List of assets available as collateral
for a loan
Refining the Plan
Service Businesses
• Service businesses sell intangible
products. They are usually more
flexible than other types of
businesses, but they also have
higher labor costs and generally
very little in fixed assets.
• What are the key competitive
factors in this industry?
• Your prices
• Methods used to set prices
• System of production
management
• Quality control procedures.
Standard or accepted industry
quality standards.
• How will you measure labor
productivity?
• Percent of work subcontracted to
other firms. Will you make a profit
on subcontracting?
• Credit, payment, and collections
policies and procedures
• Strategy for keeping client base
Retail Business
• Company image
• Pricing:
o Explain markup policies.
o Prices should be profitable,
competitive, and in accordance
with company image.
• Inventory:
o Selection and price should be
consistent with company
image.
o Inventory level: Find industry
average numbers for annual
inventory turnover rate
(available in RMA book).
Multiply your initial inventory
investment by the average
turnover rate. The result
should be at least equal to your
projected first year’s cost of
goods sold. If it is not, you may
not have enough budgeted for
startup inventory.
o Customer service policies:
These should be competitive
and in accord with company
image.
o Location: Does it give the
exposure that you need? Is it
convenient for customers? Is it
consistent with company
image?
o Promotion: Methods used,
cost. Does it project a
consistent company image?
o Credit: Do you extend credit to
customers? If yes, do you really
need to, and do you factor the
cost into prices?
References
Besley, S., & Brigham, E. F.
(2008). Principles of finance. Mason,
Ohio: South-Western.
Brostrom, G., & Brostrom, J.
(2009). The business of wine: An
encyclopedia. Westport, CT:
Greenwood Press.
Curry, J. E. (2009). A short course in
international economics:
Understanding the dynamics of the
international marketplace. Petaluma,
CA: World Trade Press.
Dent, J. (2011). Distribution channels:
Understanding and managing
channels to market. London: Kogan
Page.
Hayes, J., & Dredge, F.
(1998). Managing customer service.
Aldershot, Hampshire, England:
Gower
Schmidgall, R. S., Hayes, D. K.,
Ninemeier, J. D., & Baker & Taylor,
Inc. (2002). Restaurant financial
management basics. New York: John
Wiley & Sons.
Small, R. W., Couturier, M., &
Godfrey, M. (2011). Beverage basics:
Understanding and appreciating
wine, beer, and spirits. Hoboken, N.J:
Wiley.
Strauss, S. D. (2003). The business
start-up kit: [everything you need to
know about starting and growing
your own business]. Chicago, Ill:
Dearborn.
Weele, A. J. (2010). Purchasing &
supply chain management: Analysis,
strategy, planning and practice.
Andover: Cengage Learning.
